Your first step will be finding the employee withholding rates by address from the Municipal Statistics website.

Enter in the employees Home and work address and select View Information.

You will now have the local withholding tax rates for that specific employee, to understand how to read and enter the information in paydeck please see below:

 

1. Select the employee that you need to update.

2. Navigate to Taxes > Local Taxes and select Add Local Tax

3. Using the information returned by the Municipal Statistics website add the required local taxes as follows:

The Tax Collectors portion of this form will reflect what taxes should be applied, specifically EIT, LST and SD (Schoold District)

EIT Setup

A.) Select the State from the dropdown that matches the Work location - EIT and PSD code

B.) Ensure the default position is 1 for EIT

C.) Ensure Active is checked off

D.) Using the Total Taxes to be Withheld EIT figure add the Distribution % by dividing the shown figure with 100 to get it into a decimal. (For example 3% should be entered as 0.03)

E.) Use the Home Location PSD code to enter Resident PSD Local code

F.) Use the Work Location PSD code to enter Work PSD Local code

Once done select Save

 

To note: Proceed below only if the data returned by the Municipal Statistics website indicates a Municipal LST and School District LST

LST Setup

Select Add Local Tax again.

A.) Select the State from the dropdown that matches the Work location - LST and PSD code

B.) Ensure the default position is 2 for LST

C.) Ensure Active is checked off

Once done select Save

 

SD Setup

Select Add Local Tax again.

A.) Select the State from the dropdown that matches the Work location - SD and PSD code

B.) Ensure the default position is 3 for SD

C.) Ensure Active is checked off

Once done select Save

 

Your employeees state setup should now look something like this: